Fans back at the Emirates. Only a few and randomly spread out. But if you listened hard enough you could just make out some singing emanating from the few people dotted amongst the swathes of empty seats. So it was just like a normal “full house”.
Enjoying the vaccinery
And just like that, it was all over. Viagra pushers Pfizer have produced the answer to Covid and we can all go back to crowded commuter trains, packed shops and the pub. Or something. Now we can look forward to ever more sycophantic crawling to the heroic science community and the firms that backed them. But should we? With apologies to those of you that I have inflicted this rant on already, I say no. They come on the telly and say in a hushed voice “you know it normally takes ten years to develop a vaccine so it is a miracle that we are where we are”. No it isn’t. This is the ultimate expose of the pharmaceutical industry. It doesn’t normally take ten years to produce a vaccine, it is they who make it take ten years because they would rather flog people drugs to control diseases than prevent them because they make so much more money that way. This time, the first time that we have a situation where there is a huge amount of cash and kudos available for developing a vaccine and lo and behold we have seven of them in about eight months. They make their brothers and sisters in the other side of the drugs industry look like moral guardians. And yet we are supposed to be grateful?
Probably still taking it though. I want to go on holiday.
Here comes the Hobbstepper
She’s the lyrical insurance gangster. As once again Jackie “the sensible one” Hobbs insists on a modicum of actual content.
- Cyber Clauses. We have received a few queries from members regarding cyber clauses – some which are out, some which have not yet been issued and many bespoke versions. The IUA (we don’t normally promote rival crews, but we are on reasonable terms with Big Davey M so I will let it pass. Besides I need to ask him something so want him onside) are running an event next week dedicated to this topic that is open to all market participants, including brokers. Registration details for this event here.
- DA Claims. We forwarded a bulletin yesterday from DXC advising the detail around the processing and payment of claims advices and settlements at year end, which outlines timescales for processing as a result of work required to be completed in relation to the Lloyd’s Part VII transfer. In real terms, this means that DXC will be unable to process any collections between the 24th December and the 4th January 2021 (plus ca change?).
The down-stream implication for brokers is that they will be unable to collect any funds over that 2 week window. The LMA has written to UK and US based DCAs advising them to check the adequacy of funding, and submit any requests in to London brokers by the 9th December. London brokers may therefore see an uptick in volumes, and the LMA has advised that brokers should ideally look to action these on CLASS by 14th December 2020, thereby giving MAs 4 days to agree the sequences before the cut-off day of 18th December (for DXC to receive requests from MA and get the payment out before the 24th December) (may need a little rest at this point).
- Claims. LIIBA will be running its first claims webinar next week on Thursday 10th at 9am. Details of how to join the session were sent out yesterday and are attached here. If anyone working within the claims community would like to be added to our claims distribution list, please email firstname.lastname@example.org and we will add you (do we not have some filtering system to avoid registering riff-raff?), thus ensuring you receive claims related updates in future.
- Lloyd’s Part VII transfer. This week saw Lloyd’s send an extremely long and detailed communication out to brokers. At the end of the communication is a note to brokers requesting that they contact their coverholders to advise them of their binders transferring / partially transferring. We have attached the communication here but would highlight the following:
“In the event that brokers are unable to communicate the Master List to their Coverholders directly, the Part VII programme will be able to assist, in coordination with the DA team at Lloyd’s. If Brokers would like Lloyd’s to send the information to their Coverholders, the following information must be provided to the Part VII mailbox – Part7@lloyds.com by close of business 14 December,”
Effectively, this means that if brokers are unable (or unwilling) to do this, Lloyd’s will do this for you. However, you need to complete the form and ensure it’s with Lloyd’s by 14th December, or they won’t.
- Bulking Lineslips (you knew it was coming). The amended bulletin was issued to the market this week detailing the requirements for lineslips renewing with Lloyd’s Europe effective from 1st January 2021. We forwarded the bulletin and added our own thoughts but to re-emphasise, the required data needs to be with the lead managing agent within the timescales specified. However, use of DDM is not mandatory for the broker and therefore, any underwriter request for the broker to take on responsibilities here is subject to broker agreement.
- Brexit solutions. The LMA asked whether we were able to advise them of the EU solutions our members had put in place for their broking and own in-house coverholder binders. Chris (a name check! Haven’t been this thrilled since I met Muhammad Ali!) has constructed a list where members have been kind enough to advise us of the detail but if you haven’t and would like to, please contact email@example.com noting the name and member state of your EU entity.
- Brexit -Data protections. We are working with Lloyd’s Europe to discuss implications for 1st January under the ever increasing likelihood of a no-deal scenario – or at least no data adequacy decision. The current EuroTOBA will require amendment once details are known but in the meantime, an addendum to the existing TOBA will need to be signed before the end of the year. We are liaising with Lloyd’s Europe to ensure details are out as soon as possible and we will provide an update as soon as further detail is available.
They sound tired but they don’t sound Haggard, they got money but they don’t have Cash
The bane of many of your lives is, I know, FCA’s client money rules. But, on the whole, I think we appreciate the need for them even if the letter and the application of them is sometimes heavy handed. Fundamentally losing your clients’ money would be a reasonably bad thing. So you comply through only partially gritted teeth. And you would expect the regulators, in turn, to show an equivalent honourable approach in similar circumstances.
So it is a bit galling to discover that head honcho regulator, the Bank of England no less, has lost £50 billion. I mean, how do you do that? (other than lending it to the current Chancellor, obvs). Fifty. Billion. Quid. That has to be a hell of a sofa for it to have fallen down. And not only have they lost it, it would appear that they did not notice they had lost it because they have no idea where it is and seemingly don’t know when or where they last saw it. And if you cannot trust the Old Lady of Threadneedle Street to keep an eye on your cash, where are we as a society? It is no wonder Maduro wants his gold back. I wouldn’t trust the jokers with my wallet.
What a Bor off
Another chaotic week in government. One in which the spinning pretty much got out of control. I mean it may have been a coincidence that the independent regulator announced its approval of the Pfizer vaccine the morning after Bozzer endured the worst moment of his premiership so far with 71 of his MPs defying him in the vote on his tiers. But it very conveniently changed the dominant news story so you have to wonder. Then hapless Matt Hancock boasted that we were only able to approve the vaccine so quickly because of Brexit and our ability to take an independent decision before the EU regulators have concluded their deliberations. Nice concept, just not true. Member states have always been able to accelerate the approval of drugs in times of crisis under European law and the government had made sure it had abided by that process. And finally Gav the chav Williamson seemingly lost his mind on LBC.
Meanwhile the dominant theme has been the types of food being delivered to the Brexit negotiating teams. Now I know you rely on this column to bring you the inside scoop from our sources in the talks. Let us call him Dan – although he is more commonly known as El Perro (we were watching French Connection II, Dan said “my dad wanted to call me that” just as a large rottweiler walked across the screen “what? Dog?” “No. Eugene”. A life changed forever). So I can let you know exclusively that, whilst all the focus was on the arrival of the pizzas from Leon, El Perro found a Waitrose cheese and pickle sandwich in his bowl. Was probably wise to steer clear of fish & chips in the circs.
And would it not be delicious if a relationship so dominated by the French saying “non” came to an end with the French saying “non”.
I am off on a non-quarantining business trip abroad. Because I can.